Which activity might lead to a director being deemed unfit to act as such?

Prepare for the ACA ICAEW Tax Compliance Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The activity that could lead to a director being deemed unfit to act as such is consistent regulatory defaults. This indicates a persistent failure to comply with statutory requirements or regulations, which can suggest poor governance and management practices. Directors are expected to ensure that their companies adhere to relevant laws and regulations, as their role involves overseeing compliance and protecting the interests of stakeholders. Regular defaults in this regard can undermine trust in the company's leadership and raise concerns about the director's ability to fulfill their responsibilities effectively.

Promoting company products, expanding international trade, and increasing profits, on the other hand, are all activities that typically align with a director's role in driving the business forward. They do not inherently indicate unfitness but are rather seen as positive contributions to a company's growth and success. In contrast, a track record of regulatory defaults can lead to serious repercussions, including legal action and disqualification from directorship, highlighting the importance of compliance in determining a director's suitability for the role.

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